- 17 -
not substantiated any expenses except for tolls of $24, which we
allow as a deductible expense.
Accordingly, except with respect to the $24 deduction for
tolls, petitioner has failed to substantiate these deductions,
and they are denied.
B. Depreciation and Section 179 Expense
A taxpayer may elect to deduct as a current expense the cost
of any “section 179 property” which is acquired by purchase for
use in the active conduct of a trade or business. Sec. 179(a),
(d)(1). Section 179 property is tangible property to which
section 168 applies and which is section 1245 property.7 Sec.
179(d)(1); sec. 1.179-4(a), Income Tax Regs.
Computer equipment is “listed property” under section
274(d)(4), as defined under section 280F(d)(4)(A)(iv), unless it
falls under the exception in section 280F(d)(4)(B). Computer
equipment is excepted from the definition of listed property
under section 274 (and will, therefore, not be subject to the
substantiation requirements for listed property under section 274
and section 1.274-5T(b)(6), Temporary Income Tax Regs., supra) if
it is used exclusively at a regular business establishment and
owned or leased by the person operating such establishment. Sec.
280F(d)(4)(B). A regular business establishment includes a home
7 Sec. 1245 property is defined in sec. 1245(a)(3) as
property subject to the allowance for depreciation under sec.
167, including personal property.
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011